Inflation inches up to 11.91 percent

Published: Thursday, July 17, 2008, 21:34 [IST]

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New Delhi, July 17 : For the first time in more than 13 years, the annual inflation rate climbed to 11.91 per cent in early July, driven by higher costs of commodities and strong demand in the economy.

This is a quarter per cent jump week on week.

It would be the 22nd consecutive week that the inflation rate has been above 5.5 per cent, the central bank's target for the end of the fiscal year in March 2009.

The Cost Price Index inflation is projected to remain this year at 4.8 and 3.2 per cent in the US and the UK, respectively, and 8.8 per cent in the emerging markets. The highest inflation is projected at 15.3 per cent in the CIS counties and at 12.8 per cent in the Middle East and North Africa.

In India, too, there seems to be no respite in sight with the Wholesale Price Index inflation projected to remain in double-digit territory until May 2009.

For the week-ended June 28, wholesale prices-based inflation touched a new 13-year high of 11.89 per cent, much higher than the RBI tolerance limit of 5.5 per cent for the current fiscal.

The WPI moved up from 11.89 percent in the week ending June 28, to 11.91 per cent in the week ending July 5.